Page 16 - PetVet 2022 Master Benefits Guide CA_FINAL Version

Health Savings Account (HSA)

What is a Health Savings Account (HSA)?

If you enroll in one of the Health Savings Account (HSA) medical plans you have the opportunity to
open and contribute to an HSA which allows plan participants to set money aside on a pre-tax basis
to pay for out-of-pocket healthcare costs. The HSA offers a number of unique features that put you
in control of your health care choices and how you spend your health care dollars.

It’s Easy!

If you choose to enroll in a High Deductible Health Plan (HDHP) through the PetVet Care Centers
Medical Plan Options 3, 4 or 5, you will be able to open your HSA bank account through Optum Bank.
You will be unable to participate in both an HSA and a Flexible Spending Account (FSA).

You may contribute to an HSA unless you are covered by any other health insurance (spouse’s plan or
parent’s plan, etc.), are enrolled in Medicare or Tricare, are claimed as a dependent on another
person’s tax return, or are currently participating in a Health Care FSA.

Your elective contributions into the account can be made on a pretax basis through the convenience
of pretax payroll deductions through PetVet. Your total contributions cannot exceed the annual IRS

contribution limit, with an additional catch-up contribution for participants age 55 and over. For
2022, the annual contribution limit is $3,650 for single coverage, $7,300 for family coverage and
“catch-up” contribution limit for participants age 55 and over is $1,000. Once you reach age 65 or
over and enroll in Medicare Part A or B, you cannot continue to make contributions to an HSA;
however, you can still make withdrawals.

It’s Yours!
When you incur qualified expenses, Optum Bank allows you to draw directly from your account with
a debit card that is provided to you. The entire balance in an HSA is yours and money can roll over
indefinitely! You can take it with you if you leave PetVet Care Centers. You can also continue
contributing to the HSA as long as you are enrolled in an HSA-eligible health care plan. If you become
ineligible to contribute, you can still access the funds for qualified expenses (please see link below).
https://www.optumbank.com/all-products/medical-expenses.html

Tax Advantages
The money in your HSA may receive tax-free interest earnings until exhausted. Withdrawals from the
HSA are tax-free when used for qualified health expenses as defined by the IRS. After-tax deposits
(up to the annual IRS maximum) are deductible on your IRS tax return. Non-qualified purchases are

subject to income tax plus a 20% IRS penalty. According to IRS regulations money contributed to the
employee’s account cannot be used by or for a Domestic Partner unless the Domestic Partner is a
qualified tax dependent. The same would be true for the Domestic Partner’s children if the children
are not federal tax dependents of the employee.

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